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Blockchain-based System to Help Establishing Companies in the EU

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The prospect of establishing and managing a company in the EU is an attractive one to many companies. As entities from Singapore, the US, Israel and other non-EU locations would all be interested in such a service, Lithuania is looking for a blockchain-based system to allow them to do exactly that.

Source: iStock/LL28

The businesses, called Virtual Limited Liability Companies (VLLCs), would have the ability of being remotely managed and have their share transactions completely transparent thanks to blockchain, according to analysts from Invest Lithuania, a foreign direct investment and business development agency.

The manager of the country’s Register of Legal Entities, the Lithuanian Centre of Registers, is already working on the legal requirements for making VLLCs a reality as soon as next year.

The VLLCs would be fully-recognised corporate entities under Lithuanian law and would file financial statements and pay taxes in Lithuania. The businesses would range from those made up of a single person to large corporations with publicly-traded shares and other securities.

The plan has been endorsed by the Bank of Lithuania, which is already working on blockchain-based solutions for fintech, according to the announcement by Invest Lithuania.

“Bank of Lithuania is already building LBChain – blockchain-based solutions accelerator for fintechs. Initiative to create virtual companies on blockchain is a move towards even more ambitious goal – creating LTChain, i.e. moving relevant public services on blockchain,” Marius Jurgilas, a Member of the Board of the Bank of Lithuania, was quoted in the announcement.